Company Number: 14616506

Analysis Date: 2025-07-29 18:36 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated with limited financial history and minimal net assets (£1 equity), which suggests a startup phase. While net current assets are positive (£8,001), a significant creditor liability after one year (£8,000) and very low cash reserves (£5,558) indicate potential short-term liquidity constraints.

2. Key Concerns:

• Liquidity Position: Cash at bank is low relative to current liabilities, which may pressure operational cash flow.
• Limited Equity Base: Shareholders’ funds of just £1 provide minimal buffer against losses or financial shocks.
• Long-term Liabilities: £8,000 creditors due after one year could strain future cash flows if not adequately managed or refinanced.

3. Positive Indicators:

• Positive Net Current Assets: Current assets exceed current liabilities by £8,001, indicating working capital adequacy at reporting date.
• Compliance with Filing: No overdue filings or confirmation statements, demonstrating regulatory compliance and governance discipline.
• Single Director Control: Clear ownership and control with one director owning 75-100% shares, simplifying decision-making and accountability.

4. Due Diligence Notes:

• Cash Flow Projections: Review detailed cash flow forecasts to assess ability to meet short-term obligations and service long-term creditors.
• Nature of Long-term Creditors: Identify and understand the terms of the £8,000 non-current liabilities to evaluate repayment risk.
• Revenue Generation and Business Model: As the company operates in licensed restaurants and takeaway food (SIC 56101/56103), assess sustainability and growth prospects given limited employees and startup status.
• Director Background: Conduct background checks on the sole director for any prior regulatory or financial issues.
• Future Funding Plans: Investigate whether additional capital injections or credit facilities are planned to support growth and liquidity.